Economic activity is what is carried out by humans in order to acquire goods (products and services) that satisfy consumers needs.
Economic agents those elements that have a role in converting the factors of production into goods and services.
-people and families: they are the consumes that spends money. The also can generate products when they run a business. Also the pay taxes to the state.
-companies: they can be private or state owned. The generate goods and services create jobs for the people. The pay taxes.
-the state: offers services to people and companies and is financed by collecting taxes. Esencial services such as administration, defence and security, education, healthcare, unemployment benefits and retirement pensions.
-primary sector: obtaining resources from raw materials, agriculture, livestock, fishing, forestry and mining.
-secondary sector: coverting raw materials into manufactured products or building housing and infrastucture.
-tertiary sector: lending services (education, healthcare,trade,tourism,transport).
ECONOMIC SISTEMS IN THE WORLD. Current systems
-capitalist or market economy: is based on a free market economy, private property means f production, freedom to work and hire, and State intervention on a small scale.
one variation of this which is becoming more widespread is the mixed economy.
-communist or planned economy: the economy is planned and centralised by the State, the production process is controlled and the state is the owner of the means of production. Private property and initiative dont exist, only state-owned properties. Its objetive is to achieve collective benefit through policies decided upon by the state. This system was very important in the past, but it has practically dissapeared since the breaking up of the soviet union.
multinationals: a large part of the global market that is controlled by companies.
renewable resources together with inexhaustible resources are fundamental because their existence and renewal depend on rational use.
-fertile soil is important for agriculture and livestock>basis of the global food supply
-forests provide wood and they are essential to the absorption of CO2
-logging and forest fires: equatorial and tropical forests are threatened due to abusive explotation.
non-renewable resources intense industrial and economic development, a high global population and a lifestyle based on consumerism all rely on large amounts of non-renewable resources, such as hydrocarbons or mining resources.